INAFI Bangladesh holds high-level consultations with stakeholders

INAFI Bangladesh organised a national consultation titled “Microfinance Sector Consultations on National Budget 2025–26” at the BRAC Centre, Mohakhali on 19 May 2025.

The event convened leaders from Bangladesh’s microfinance sector to articulate collective expectations for the upcoming national budget, according to a press release.

The consultation was attended by Professor Dr. Mohammed Helal Uddin, Executive Vice Chairman (EVC) of the Microcredit Regulatory Authority (MRA), as chief guest. Guests of Honor included Asif Saleh, Executive Director of BRAC; Md. Ariful Haque Choudhury, President of ASA; and Dr. Humaira Islam, Executive Director of Shakti Foundation for Disadvantaged Women.

The event was chaired by Mohammad Muslim Chowdhury, Chairman of INAFI and Sonali Bank PLC, and former Finance Secretary and 12th Comptroller and Auditor General of Bangladesh.

Emranul Huq Chowdhury, Vice Chairman of INAFI Bangladesh, delivered the keynote presentation outlining major policy and financial expectations of the sector: “The microfinance sector plays a vital role in financial inclusion and poverty alleviation. A revolving fund of at least BDT 100 billion is essential for sustaining operations, and simplified tax policies will enable us to reach more people with fewer administrative burdens.”

The microfinance sector called for the establishment of a BDT 100 billion revolving Micro Loan Fund to ensure sustainable financing, along with the simplification of complex tax provisions introduced in the Finance Bill 2024.

Sector leaders urged the government to allocate grant funding for essential social development programs, particularly in light of declining donor support.

They also emphasized the importance of institutionalizing formal pre-budget consultations between the Ministry of Finance and microfinance institutions to ensure that policy decisions reflect on-the-ground realities and sector needs.

Asif Saleh, Executive Director of BRAC, emphasized the importance of safeguarding the social mission of MFIs: “As we move toward financial sustainability, we must not lose sight of our social obligations. The country is at a critical stage facing a poly crisis. In this space, just like during covid times, MFIs need to play a leading role in reaching the informal sector, in climate adaptation and addressing unemployment issues by creating new jobs by providing add-on linkages. The government’s support—through enabling policies and budget allocations—can help us maintain this balance.”

Professor Dr. Mohammed Helal Uddin, Executive Vice Chairman of MRA, called on the sector to better quantify its contributions: “The microfinance sector must present its impact in measurable terms. This evidence is essential to make a stronger case for support from policy-makers and development partners.”

He advocated for greater access to finance for underserved communities and highlighted a practical funding strategy: “If large MFIs are allowed to mobilize savings—similar to the model used by banks—and use that to support smaller MFIs, the sector’s current funding crisis could be significantly mitigated.”